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SingPost prices S$250m fixed-rate notes due 2030 at 2.53%
SINGPOST Group Treasury will issue S$250 million in 10-year fixed-rate notes guaranteed by postal service provider Singapore Post (SingPost).
The senior unsecured notes will carry a coupon of 2.53 per cent per annum, SingPost said in a regulatory filing on Friday.
They are expected to be issued on Nov 19, 2020 and will mature on Nov 19 2030, unless previously redeemed, purchased and/or cancelled.
The notes may be redeemed at the option of the issuer in whole, or in part on any date prior to the maturity date.
Net proceeds from the issuance will be used for general corporate purposes including refinancing of the existing borrowings of SingPost and its subsidiaries.
The notes will be issued under SingPost Group Treasury's S$1 billion multicurrency debt issuance programme.
HSBC, Singapore branch, OCBC and UOB have been appointed joint lead managers and bookrunners for the offering.
Goh Chong Han, director of debt capital markets at HSBC Singapore, told The Business Times (BT) on Friday that this is a rare issue from SingPost, which last accessed the debt capital markets back in 2012. He added that SingPost is rated BBB+ by S&P. (see amendment note)
BT understands that SingPost saw an order book of over S$800 million from 53 orders, with 54 per cent distributed to institutional investors and the remaining to banks and private banks.
As at 3.36pm on Friday, SingPost shares were trading flat at 68.5 Singapore cents.
Amendment note: An earlier version of this article stated that the notes were rated BBB+ by S&P. HSBC has clarified that it was in fact SingPost that was given this rating.